China Merchants Port : CMPort's subsidary Acquire 51% stakes of Zhongshan Port Group

CMPort's subsidary Acquire 51% stakes of Zhongshan Port Group

11 September, China Merchants Port Holdings Company Limited ('CMPort' or the 'Group',HKSE code: 00144)is pleased to announce that, Shenzhen Chiwan Wharf Holdings Limited ('Chiwan Wharf', SHE: 200022), a subsidiary of CMPort, have agreed the terms of Share Purchase Agreement with Zhongshan Zhonghang Investment Development Limited, to acquire 51% equity interest of Zhongshan Port & Shipping Enterprise Group ('Zhongshan Port Group') with a consideration of RMB 485million (equivalent to approximately HK$579million). The acquisition will further strengthen the Group's port network and strategic synergy of port resources in the Pearl River Delta region. The Share Purchase Agreement is expected to be signed on 13 September 2017.

Zhongshan Port Group currently operates three port zones namely Zhongshan Port, Xiaolan Port and Shenwan Port in the Pearl River Delta region with a total of 23 berths in operation. It principally engaged in port investment and operation, water cargo transportation, logistics operation, agency of shipping and cargo, storage, import and export of goods and technology, and leasing of properties in Zhongshan, Guangdong Province of China.

As at 30 June 2017, the total assets and net assets of Zhongshan Port Group amounted to approximately 1,051million and 477million respectively. The consideration was determined based on the appraised value of Zhongshan Port Group as at 30 June 2017 and also with reference to the historical financial performance and potential future development. The total consideration will be paid in two installments, and will be funded by the internal resources of the Group and external bank loan facilities.

Upon the completion, CMPort will indirectly control Zhongshan Port Group through Chiwan Wharf (a subsidiary of CMPort). The Group will be able to extend its service and investment to the upstream terminals and barge service in the Zhongshan Ports of Zhujiang River so as to stablise the existing shipping routes and customers in West Shenzhen, as well as to strengthen its attractiveness among the shipping companies and shipping lines.

About Zhongshan Port Group
Zhongshan Port Group handled 1.04 million TEUs and generated RMB 101 million of net profit before tax for the year of 2016. It ranked 4th amongst the top ten port group in the Guangdong province. With nearly 1,700m width quay length, over 40,000 tonnes external trade vessels and over 300 different kinds of trailers, the water cargo transportation is well versed among Zhujiang trunk stream as well as Guangdong, Hong Kong and Macau. According to statistics, the container throughput handled by Zhongshan Port Group accounted to 70% of the overall Zhongshan Ports.